Items Tagged with 'Multifamily investment'

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Multifamily developers’ confidence weakened further in the first quarter of 2019, according to the National Association of Home Builders. Despite Q1's worrisome reading, NAHB Chief Economist Robert Dietz said the results remain consistent with the organization’s 2019 forecast.

When it comes to Opportunity Zones, investors are excited about the potential for tremendous tax savings, but many are not buying in just yet. What's the problem? Lingering questions about how, exactly, Opportunity Zones work. While HUD estimates the program could spur as much as $100 billion a year in investments, evidence suggests this potential is far from being realized. As interested parties await clarification from the Treasury, HUD is seeking public input as to how it can leverage its authority to encourage uptake and maximize the impact for distressed communities.

A New York man has admitted to taking part in a massive multifamily real estate scandal that harkens back to some of the darkest parts of the housing crisis, including fake residents, fake incomes, and inflated mortgages. The charges stem from an investigation that the Wall Street Journal previously called “one of the biggest mortgage-fraud probes since the financial crisis.”

Rising construction costs contributed to multifamily developers’ confidence weakening further in the fourth quarter of 2018, according to the National Association of Home Builders. NAHB Multifamily Council Chairman Steve Lawson said: "Rising construction costs and difficulty with getting projects approved have made building particularly challenging in some parts of the country."

Nuveen Real Estate, a global real estate investment manager owned by TIAA, is planning a significant expansion of its multifamily real estate business in the U.S. Nuveen announced this week that it launching what it calls the “U.S. Cities Multifamily Fund,” a real estate investment vehicle that just closed on its first investment round, which raised $550 million to invest in multifamily real estate.

While Mark Calabria could very well enact some significant changes at Fannie Mae and Freddie Mac if he’s approved to serve as the next director of the Federal Housing Finance Agency, Calabria told a Senate panel this week that there likely won’t be any changes to the way that Fannie and Freddie operate in the multifamily space.

Unlike its GSE counterpart, Fannie Mae had a great year in multifamily in both production and its bottom line. Both Fannie Mae and Freddie Mac grew their multifamily portfolios by sizable margins in 2018, but Freddie Mac saw its net income from multifamily fall by $700 million. Fannie Mae, on the other hand, saw its net income from multifamily rise by approximately $1.3 billion.

Freddie Mac made more money last year than it did in 2017, but that growth didn’t come from the multifamily side of the business, despite the government-sponsored enterprise having a record year for multifamily. So what happened? Click through to find out.

[Expert commentary] Multifamily investors have lots of options when it comes to finding financing for projects in the $1 million to $6 million range. But which is the best option? Our multifamily insider breaks down the options to help you make sense of a complicated market.

Last year, Redwood Trust, a real estate investment trust that specializes in buying and securitizing jumbo mortgages, grew its real estate investor loan business when it acquired a 20% stake in 5 Arches, an originator and asset manager of investor-focused loans. As part of the deal, Redwood Trust had the right to purchase the remaining 80% of 5 Arches within one year. And now, Redwood Trust plans to do just that.

Commentary

Every day, people in your community are looking for a new place to call home. But in the age of the digital shift, they are now getting most of that information from their mobile devices rather than more traditional sources.